Here’s why I bought more bitcoin today

Friday, 16 November 2018
London, UK
By Sam Volkering

  • Today’s the big day
  • What is reality?
  • Are you buying crypto today?

Today is a great day. You just don’t know it yet. I’ll tell you why shortly, but there’s something else pretty important you must know.

Today is also the day when you’ll get access to The Billionaire Trader’s free, three-part masterclass. However, you’ll only get access if you’re on his exclusive list.

If you’re not on it yet, don’t worry — we were planning on closing it at 2pm today. But I’ve managed to convince my publisher to keep the list open until midnight tonight, so you can still get access to it here.

For the last few weeks you will have seen The Billionaire Trader’s special essays below my ramblings on a Friday. Hopefully you will have learnt a little about the method behind the mystery.

His approach to trading resonates with me. In particular the idea that in trading, sometimes the biggest enemy in the room is yourself.

In his words:

The market is there and it will do whatever it does regardless of what you’re thinking and what you hope to happen. 

To make sense of anything we need to simplify the complexity of life, but the models of reality that we create in our heads aren’t necessarily linked to reality.

Couldn’t agree more. And that psychological approach to trading, investing, even just life in general, has never been more applicable than it is today.

I’m particularly excited about what The Billionaire’s Trader has coming for you next. His three-part masterclass is set to be one of the most important video series you will probably see this year.

And with the current state of markets, perhaps the timing for this masterclass couldn’t be more perfect. Again, I hope you’re already on the list to get access. If not, make sure you get onto it now before it’s too late. This is not something you want to miss out on!

Markets

Overnight the Dow Jones Industrial Average closed up 208.77 points, or 0.83%.

The S&P 500 gained 28.62 points, or 1.06%.

In Europe, the Euro Stoxx 50 index fell 15.05 points, or 0.47%.

Meanwhile, the FTSE 100 rose 0.06%, and Germany’s DAX lost 58.86 points, or 0.52%.

In Asian markets, Japan’s Nikkei 225 is down 51.31 points, or 0.22%. China’s CSI 300 is up 0.77%.

In Australia, the S&P/ASX 200 is up 4.10 points, or 0.071%.

On the commodities markets, West Texas Intermediate crude oil is US$56.84 per barrel. Brent crude is US$67.09 per barrel.

Turning to gold, the yellow metal is trading for US$1,215.32 (AU$1,672.02) per troy ounce. Silver is US$14.31 (AU$19.69) per troy ounce.

One bitcoin is worth US$5,543.21.

The Aussie dollar is worth 72.68 US cents.

The reality you think you see isn’t reality

That sentence from The Billionaire Trader really struck a chord with me.

‘…the models of reality that we create in our heads aren’t necessarily linked to reality.

The human brain is a fascinating organ. It’s capable of so much. All that processing power, all that potential, packed into the most fragile biological substance in the world.

It’s just a whole bunch of chemicals, electricity, and organic material. Yet it’s by far the most capable ‘computer’ we’ll ever know. And in truth, humanity really still isn’t all that much closer to truly understanding the full potential of the brain.

You could, of course, turn to sci-fi movies like Lucy or Inception to get some wild ideas. But we really just don’t know what the full power of the brain is capable of.

What we do know, however, is still vast. We know that our brain is capable of processing everything needed to keep us alive. We know it’s central to the very existence of who we are, by giving us consciousness. We know that it’s able to process huge sums of information, analyse it and deliver it back to us.

And we also know that it’s more than capable of lying to us.

The question is why? Why does our brain lie to us? Why do we lie to ourselves? What we think we know, the reality we create for ourselves, sometimes just simply isn’t true…and we know it!

It’s like a weird internal game of bluff between our conscious and subconscious minds.

The likely reason is that when we lie to ourselves it’s a form of protection. Or at least perceived protection. It’s the fight or flight mechanism kicking in, but in a more subtle way.

For example, you can convince yourself that something is going to be awful and horrible, when in reality it ends up being quite beneficial to you.

When I was a younger lad my brother and I used to participate in Judo. My brother was exceptionally good at it, and he loved it. I hated it. I really didn’t ever want to start it and didn’t want to participate in it.

And boy did I used to kick up a stink when it was time to go to Judo. I’d managed to convince myself it was going to hurt me, that I would end up worse off for doing it.

I was wrong. My reality was different from actual reality. I stuck with it. And it helped teach me discipline, it helped me get stronger. It taught me physical skills that I’ll never lose. Ultimately I was an all-round better human being for doing it than I would have been if I had bailed and stuck to my perceived reality.

I’m sure over time you could find examples yourself of your perceived reality being far different from the actual reality of something.

I particularly think this applies to markets. I’ll let The Billionaire’s Trader relate this to stock markets over the coming weeks. But today I want to explain how your reality is not the actual reality when it comes to the crypto markets.

The start of the future

Right now, perceived reality seems to be heading towards the idea that bitcoin and cryptocurrencies are dead/dying/finished/crashing to zero.

You only need to take a cursory glance at two of the ‘Dr Dooms’ of the world, Nouriel Roubini and Peter Schiff, to see two very anrgy men yell at bitcoin some more.

Then take a moment to flick over to CNBC and witness firsthand the fear permeate through the hosts into the TV screen and out into your room.

Of course, it’s likely most major financial news outlets will be saying much the same. Calling a crash, another bubble bursting and several other fear-based lines about the ‘end of crypto’.

This is your reality today. Fear, certainty of fear and doubt of ever making any money ever again. I call it ‘FOLE’ — fear of losing everything.

And in this reality, you might look at any crypto holdings you’ve got and just liquidate the lot of them. If you’re stupid enough to have bought any crypto on margin, then you may have been forced into liquidation — we can guarantee that’s the case for a lot of people.

In fact we’re confident that the acceleration of the current fall is due to liquidations on margin positions. But that’s something for another day.

The core point here is that reality is different from what you’re seeing now. The false reality is the end of bitcoin and crypto. The true reality is that bitcoin is as strong and robust today as it’s ever been. And that’s why today is a great day. Time to get some more crypto at a discount!

In fact, there’s more positive development happening with bitcoin and other related cryptocurrencies like ethereum than there’s ever been.

Think about it like this; imagine a company had been consistently delivering on its milestones. That week after week it was making a better product, better service, bringing on more users and reaching more new customers every single day.

If the market price of that company for some bizarre reason were falling, you might wonder why. And you’d be smart to look deeper into it. But after your deep dive, what if you discovered there was nothing wrong with it at all?

In fact, what if you found out that it had the potential to become the biggest company in the world? Would you risk a bit of capital and buy some of that stock? Or would you just follow the sheep consensus and avoid it like the plague?

Your answer to that will reveal what kind of investor you are. And it will say something about your risk tolerances. But if you are smart enough to see past the false realities and really look under the hood, there’s only one outcome here.

I bought more bitcoin today, and a couple other crypto that I’ve recommended in my crypto advisory services, Secret Crypto Network and Crypto Tech Investor.

If it’s good for the goose it’s good for the gander. I think this is another opportunity to ‘crypto cost average’ and top up your crypto positions.

Understand the technology, understand the potential. Understand the risks, understand your plan.

And most of all, understand that your reality might not be actual reality.

Regards,
Sam


Speed Trading Masterclass Starts Today
By The Billionaire’s Trader

To be honest, I’m done with blowing my own trumpet.

It’s not something I enjoy doing one little bit.

Trading is something to be done without ego. If you get too ‘up yourself’, so to speak, the market is always waiting to kick you on your proverbial and teach you a lesson.

But I also know that unless I tell you about my experience and what I’ve done, no one else is going to do it for me. So I hope you’ll forgive the sometimes brazen approach.

After all, being humble is one of the greatest lessons that the markets teach you.

We can spend our lives walking around with any number of delusions and usually nothing much happens one way or the other as a result. But with every delusion we bring to the table when engaging with the market, there are direct, harsh and painful consequences.

We lose money.

And some pride.

We suffer intense pressure and work incredibly hard, but finish the day empty handed. It doesn’t seem fair.

But that’s the market. It‘s there doing whatever it does day in and day out, and it couldn’t care less whether you make a million dollars in a day or lose your shirt.

You can get cocky and trade too large, or ‘trade angry’ after a loss as you try to get back lost money quickly. You might become too scared to pull the trigger and then watch the perfect trade pass you by and become enraged.

This is all inner turmoil that affects your decisions, and you will most likely make mistake after mistake until either your account dries up…or you hit a wall and decide you just need to stop trading for a while.

Then after a break, you’ll return to trading with a level-head and start making some money again. But soon enough the things within yourself that you don’t even understand will rear their head again and kneecap your efforts to get ahead.

We can hurl abuse at the market for just hitting our stop loss before the stock turns around and does exactly what we thought it would do. Or we can harbour resentment towards the High Frequency Traders, who we know are front running our trades and forcing us to pay more on the way in and to receive less on the way out.

We can blame the market commentator who suggested that some stock looked like a good buy — just before a bad announcement.

But in the end, there is no one to blame but the person who presses the button to trade. If we want to be involved in the markets, there is no greater statement than ‘the buck stops with you’.

There are no rules in the market. No road rules to tell you when to stop, when to go, and at what speed to travel. From that point of view, it’s an incredibly liberating environment.

You can enter a trade in a currency and leverage yourself at 100-to-one and risk every cent you have in the account on the one trade. There’s no one leaning over your shoulder saying: ‘what in the name of all things holy are you doing?!’

To end the pain, we are forced to take action. You can quite literally go down to the pub and drink a few pints while your money is rapidly depleting from your account. Unlike betting on the horses, where you have to go back to the smiling bookie to place another bet, when you trade you can stick your head in the sand and do nothing. You will keep losing money until you decide to act.

So, if there was ever an activity that forced you to confront every demon you have, trading is it. Oh, and perhaps golf.

Using the market as a tool to increase your self knowledge is not highly recommended. It can be a long and arduous path. And an expensive one.

In which case, why not lean on someone who has trod that well-worn path, and is happy to show you the way through the nettles?

I’m hoping my analysis over the last few weeks has at the very least piqued an interest in you to know a little more about trading. There is so much more that I can show you, and the start of that journey is to tune into the ‘Speed Trading’ Masterclass I’ve put together for you.

It starts today and it’s absolutely free. Your last chance to join is right here.

In it you will gain a better understanding of why I look at markets the way I do. If you’ve read these essays, and you have a few nagging questions, then the Masterclass should put things in order for you.

We’ll go through my history in the markets and outline the development of my theory over time.

You’ll see why the combination of buy and sell zones with the buy and sell pivots is so powerful.

You’ll learn about creating the ‘free option’, trading short and with leverage, and you’ll see past trade examples (real trades), including why we took them and how they worked out.

I’ll also release dedicated video updates if you sign up for the Masterclass. This will be another free added bonus.

So if things heat up over the next few weeks in the market, you can be sure that I’ll send you timely updates that will not only increase your knowledge about the way I analyse price action but could also give you actionable trades. 

When volatility picks up it’s like someone hit fast forward on the remote. Trades which usually take weeks or months to play out can happen over a few days. It’s an exciting time to trade.

Just sign up for the Speed Trading Masterclass here. I’ll reveal my identity, and we can start diving deep into the trading world.

Until next time,
The Billionaire’s Trader

Publisher’s Note: Quick. Join the Speed Trading Masterclass now. We’re already at 4,216 registered attendees. We’ll likely have to stop taking registrations once we hit 5,000. That’s so the sheer number of people watching the series doesn’t put a strain on the servers. We want you to enjoy and learn from the series without annoying ‘buffering’. So, register now. It’s FREE. You can do so by going here.